Commercial Bank Cash Inventory Management

With the recent development and reformation of commercial banks, the business of them increase greatly. In recent ten years, the financial reformation of China promotes fast and sustainable development. In theirs operation management, the conventional bank settlement functions and methods become more and more standardized and efficient, and the information technology are widly and deeply used in their business processes. However, as one of the most basic operations, the cash operation developed slowly in past several year. The mode of doing cash operation is mainly based on handworked. A lot of problems exist in cash operation process and management, which leads to a large number of cash inventory, and in further leads higher and higer no-intrest assets and cash management cost and increases the risk of cash management.Combined the cash management and relevent experience, this dissertation focuses on studying how to improve the cash management and its operation using the modern cash theory and inventory control theory. On the base of investigating the current cash operation system and process in Industrial&Commercial Bank of China Beijing Branch (ICBC), we analyzed the collected recent history data, and pointed that the exsting main problem in aspect of cash management is the unreasonable cash safty stock. A new cash physical distribution system is established, and the more scientific and reasonable the safty stock of cash inventory and control strategy is given, which helps to improve the cash management and reduce cash inventory, and can effeciently reduce no-intrest assets, promote the utilization and service level of cash, and avoid the cash risk.